Gaza key power plant could shut over money row

EU starts scaling back funds, says it wants PA to find other ways to pay for fuel; PA demanding Hamas pay its share.

January 27, 2010 16:27
Gaza key power plant could shut over money row

Gaza power station 224.8. (photo credit: AP)

A money dispute between the rival Palestinian governments is threatening to shut down 's only power plant.

The dispute pits the internationally backed government of the West Bank against 's Hamas rulers.

The plant provides power to much of northern .

The European Union used to pay for the plant's fuel as part of an aid package to the Palestinian Authority in the .

However, the EU decided to start scaling back and said it wants the Palestinian Authority to find other ways to pay for the fuel. The Palestinian Authority demands that Hamas pay its share.

Hamas insists that the EU resume payments.

An engineer says the plant could run out of fuel as early as Thursday.

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